Cleveland, feds will erase nearly $190M in medical debt

How it works: RIP Medical Debt persuades local hospital systems to let it purchase portfolios of bad medical debt, which are already for sale on secondary markets.

• The legislation's sponsor, Kris Harsh, noted at a press conference yesterday that this debt is typically bought by collectors who "hound you to your grave."

Yes, but: RIP Medical Debt is a charitable organization. Once they acquire the debt, they forgive it.

What they're saying: "Medical debt is like a monkey on your back," Harsh said.

• "It never goes away, you think about it constantly, and it affects your credit score."

By the numbers: There is no application process. RIP Medical Debt will locate recipients who make up to 400% of the federal poverty line or whose medical debt burden represents 5% or more of their annual household income.

Of note: The city's contribution will go toward wiping away the debt of residents within city limits, but it can be leveraged to raise additional philanthropic dollars to make an even larger impact in the region.

What's next: RIP Medical Debt will begin working with local hospitals to acquire the debt portfolios and could begin sending letters to recipients as soon as this summer.